I thought at first Madame was a "Fag Hag". (BTW I mean absolutely no offence by this term and you'll see the following Wiki quote shows it to be equally embraced and objected to). If you check "Fag Hag on wiki, it's quite an interesting article.

Wiki wrote:Fag hag is a gay slang phrase referring to a woman who either associates mostly or exclusively with gay and bisexual men, or has gay and bisexual men as close friends. The phrase originated in gay male culture in the United States and was historically an insult. Some women who associate with gay men object to being called fag hags, while others embrace the term.

"Disliking Carrot would be like kicking a puppy.""You kicked a puppy," Lobsang said accusingly.

lyn wrote:Pepe told Glenda that he joined the Dwarfs - you just have to believe some things and you're a dwarf. and know the right people. and Madame knew the right things about the right people.

Yes, early on in the book when Glenda wakes up from her sherry-induced nap at the micro-mail show and stumbles into the back alley area. I think Pepe said he was a Cockbill Street boy (I think, could be a different area) that joined the Dwarfs when Glenda makes a reference to Uberweld.